Bitcoin: The Future of University Funding? University of Austin Explores Cryptocurrency Endowment
University of Austin pioneers higher education funding with Bitcoin, showcasing an innovative approach and its impact on financial strategies in academia.
Austin, TX — The University of Austin, opening later this year, is trying something new by using bitcoin for its endowment fund. This move could change how universities handle their money.
In partnership with Unchained, a local bitcoin financial service, the university received an initial donation of two bitcoins, worth $138,000, from Unchained's founder and CEO, Joseph Kelly. After getting approval from the Texas Higher Education Coordinating Board in November, the university plans to welcome its first 100 students this fall at the Scarborough Building downtown. Announced in November 2021, the University of Austin aims to offer a different kind of education, free from cancel culture and censorship.
Innovative Funding Strategy
The University of Austin wants to shake up the usual ways universities fund themselves by using bitcoin. Bitcoin is a digital currency that works without banks and relies on a network of computers to approve transactions, which are recorded on a blockchain for security. Chad Thevenot, the university's senior vice president for advancement, said the bitcoin endowment will be part of a larger mix of investments, including stocks and other assets.
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Long-term Bitcoin Plan
The university will keep the bitcoin endowment for at least five years to help fund its operations. The idea came from casual meetings between Thevenot and Kelly, who works nearby. Thevenot believes this will attract interest from the bitcoin community and align with the university's forward-thinking approach.
"Bitcoin excites our students and staff," Thevenot said. "It fits with our innovative vision."
Kelly, motivated by the university's focus on entrepreneurship, sees this as a way to connect the academic and bitcoin worlds. He thinks many in the bitcoin community will appreciate the university's mission and want to support it.
Bitcoin in Higher Education
While some universities accept cryptocurrency donations, they usually convert them to avoid price swings. The University of Austin's decision to keep its bitcoin donations shows it believes in bitcoin's long-term value. Thevenot isn't worried about market fluctuations, viewing any amount of bitcoin as a gain.
David DeMatthews, an education policy professor at the University of Texas, said the $5 million endowment isn't huge but serves as a good way to promote bitcoin. Finance professor Cesare Fracassi added that bitcoin donations have tax benefits similar to stock donations, despite bitcoin's volatility.
Shimon Lazarov, Unchained's chief marketing officer, acknowledged bitcoin's price ups and downs but highlighted its potential for big gains, suggesting the endowment could grow significantly in five years.
Texas and the Future of Bitcoin
Carla Reyes, a blockchain expert at Southern Methodist University, sees the University of Austin's move as rare and exciting. She believes Texas, with its strong tech scene, is a leader in blockchain innovation and hopes other universities will follow suit.
Reyes encourages universities to see the real value in cryptocurrencies and consider partnerships that could bring in new funding opportunities.
Thevenot concludes, "Using bitcoin, we embrace the risk and connect with Austin's tech community. It's not just an investment; it's part of our identity."
Also Read: 10x Research Recommends Holding Bitcoin Despite Fed's Single Rate Cut Prediction for 2024
